Yesterday Attorney General Jeff Sessions announced his resignation from the Trump cabinet in a move widely celebrated by cannabis fans. And it turns out investors were just as happy about the news as anyone.
Cannabis stocks made major gains yesterday after Sessions' resignation. Canopy Growth and Aurora Cannabis stocks both rose by eight percent, ETFMG Alternative Harvest ETF increased six percent and the most impressive gain was by Tilray that went up a substantial 30 percent.
Obviously, Sessions resigning as Attorney General was a major factor, considering his desire to crack down on the legal cannabis industry. But obviously the success of the recreational ballot initiative in Michigan and the medical marijuana initiatives in Missouri and Utah also contributed to these stock increases. And Democrats took control of the House of Representatives, another move expected to yield positive results for the cannabis industry.
Of course, it's sort of weird that all of these companies saw their stocks increased because even though they are traded on the U.S. stock exchange, they're all Canadian-based companies. So presumably, these latest developments won't really increase their own bottom-lines or profits unless they decide to begin U.S. based operations.
Let's hope Trump doesn't find out that the stock market increases every time one of his officials resigns, or he might force them all out until it's just him and Pence making all the decisions.
(h/t CBS News)